2nd Mortgage

A second mortgage or 2^nd mortgage is a secured loan usually obtained through a bank or other financial lending institution. It is subordinate to another loan against the same property. What this simply means is that if the loan goes into default, payment obligations are not being met, the first mortgage will get paid off first before any other monies are applied to the second mortgage.

It is not uncommon, in real estate, for properties to have more than one or multiple loans against that same property. The first mortgage can simply be defined as the first loan that is registered with the local registry. If another loan is registered against that same property, or second loan against that same property it is called a second mortgage. Third and fourth mortgages are also available but with each loan the risk to the lender increases.

Lenders typically charge higher rates for each loan that is taken out against that property. For many homeowners the recent drop in interest rates provides a great opportunity to refinance second mortgage, first mortgage or any other loans that they may have. For your convenience we have included a variety of resources throughout this site to help assist with your refinancing needs.